The number of millionaires living in Africa dropped by nearly 20 000 in the past decade as the continent's ultra-rich either moved away or saw dramatic currency depreciations eat away at their wealth.
There are now just 135 200 individuals with wealth of US$1-million or more, an 8% decline from 2013, according to a report by Henley Partners. Along with the continent's 342 centimillionaires and 21 billionaires, those individuals have total wealth of $2.5-trillion, the consultancy found.
"Currency depreciation and underperforming stock markets have chipped away at Africa's wealth compared to global benchmarks," Dominic Volek, group head of private clients at Henley Partners, said in the report. "With African stock markets underperforming against global peers, local property markets facing headwinds and currencies depreciating against the dollar, African investors have seen their wealth eroded on multiple fronts."
Africa's economies have faced multiple challenges over the past decade that have put strain on their budgets and currencies, from Covid-19 to rising interest rates to geopolitical tensions.
South Africa, which has more than twice as many wealthy individuals as any other African country, has lost 20% of its millionaires over in the last 10 years as the country battled logistics constraints, rolling blackouts, and endemic crime and corruption.
During that time, the rand has fallen by 43% against the greenback and the FTSE JSE All Share Index has also trailed the S P 500.
Mauritius to boom ' READ: VC inflows into African start-ups slump 31%"Mauritius, with its stable governance and favourable tax regime, is projected to experience a remarkable 95% growth rate, positioning it as one of the world's fastest-growing wealth markets," the report said. "Namibia, too, is poised for impressive high-net-worth growth." (c) 2024 Bloomberg LP
